Indonesia is an emerging global powerhouse in Asia. With the GDP expected to reach US$ 1 trillion in 2012, Indonesia is the largest economy in Southeast Asia. Much less affected by the global financial crisis compared to its neighboring countries, Indonesia’s economy grew by 5.7% in 2013, making “The World’s Most Stable Economy in the Last Five Years” according to The Economist Magazine.
Indonesia grew by 6.2% in 2012 and in 2014, stronger economic growth is expected around the lower end of the 5.8-6.2% range. Future economic expansion is expected to include more inclusive growth as nominal per-capita GDP is expected to quadruple by 2020, according to a Standard Chartered report.
A large part of our economic success is a result of growing middle class and stable economic growth. Indonesia is in list of MINT economies (Mexico, Indonesia, Nigeria and Turkey), namely those that were the most attractive to long-term investors due to their favorable demographic profiles.
Indonesia’s debt to GDP ratio has steadily declined from 83% in 2001 to be less than 26% by the end of 2013, the lowest among ASEAN countries, aside from Singapore, which has no government debt.
As a result, the Republic continued to receive good reviews. The rating reflects Indonesia’s resilience to the global financial crisis, improving government and external credit-metrics, and an ability to manage domestic political challenges to the reform agenda.
- Fitch Ratings (November 15, 2013): affirmed Indonesia’s sovereign credit rating at BBB – level with stable outlook.
- Rating and Investment Information, Inc (October 11, 2013): affirmed Sovereign Credit Rating of the Republic of Indonesia at BBB-/stable outlook.
- Japan Credit Rating Agency, Ltd (July 22, 2013): affirmed Indonesia’s foreign currency long-term senior debt at BBB – with stable outlook.
- S&P (May 2, 2013): affirmed Indonesia’s sovereign credit rating, at BB + level for long-term.
- Moody’s Investors Service (January 18, 2012): upgraded Republic of Indonesia’s foreign and local-currency bond ratings to Baa3 with stable outlook.